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Senate To Begin Hearings On Chamber-Led Prevailing Wage Repeal

May 11, 2015

The Michigan Senate will begin hearings this week on legislation to repeal Michigan’s prevailing wage. Wendy Block, Director of Health Policy & Human Resources for the Michigan Chamber, will testify in support of Senate Bills 1,2 and 3, as Chamber members have identified repeal of the prevailing wage as a 2015-16 legislative priority.

Michigan’s prevailing wage law is both anti-competitive and fiscally irresponsible. Current law mandates that on public construction projects, the labor component will not be subject to competitive bidding but rather set by government officials in accordance with “prevailing” union wages. This requirement artificially inflates taxpayer-funded school and local government construction costs by approximately 10 percent without any additional gain or return on investment, denying taxpayers the fiscal accountability they deserve.